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AVEO Oncology Announces Extension of Debt Facility Interest Only Period

Press Release

AVEO Oncology Announces Extension of Debt Facility Interest Only Period

Extends Cash Runway to Fund Planned Operations into the Third Quarter
of 2019

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Dec. 4, 2018--
AVEO Oncology (NASDAQ:AVEO) today announced a six-month extension to the
interest only period under its existing amended and restated loan and
security agreement with Hercules Capital, Inc. (Hercules). The extension
was granted as a result of achieving certain predefined requirements
under the agreement, including successfully meeting the primary endpoint
of the Company’s Phase 3 TIVO-3 study of tivozanib in refractory
advanced or metastatic renal cell carcinoma (RCC), by demonstrating a
significant improvement in progression free survival.

The Company will begin making principal payments on the $20.0 million
facility starting on August 1, 2019. AVEO believes that its available
cash, cash equivalents, and marketable securities, together with the
extension of the interest only period under the Hercules loan agreement,
which results in deferment of principal payments, will allow it to fund
planned operations into Q3 2019. This estimate assumes no receipt of
additional milestones from AVEO’s partners, no additional funding from
new partnership agreements, no additional equity or debt financings, and
no sales of equity through the exercise of outstanding warrants issued
in connection with the 2016 private placement or outstanding warrants
issued in connection with the settlement of the securities class action
litigation.

“Extension of our cash runway takes us through several key anticipated
milestones, with the presentation of our TIVO-3 data, including a
planned update to the preliminary OS analysis which will contain
additional patient data recovered in the ongoing OS sweep, and potential
submission of a New Drug Application with the FDA for tivozanib in RCC.
Both milestones are expected in the first half of 2019,” said Michael
Bailey, president and chief executive officer. “We also look forward to
making important progress within this period on our immunotherapy
combination strategy, the third pillar of our tivozanib strategy.”

About AVEO

AVEO Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to
advancing a broad portfolio of targeted medicines for oncology and other
areas of unmet medical need. The Company’s strategy is to retain North
American rights to its oncology portfolio while securing partners in
development and commercialization outside of North America. The Company
is seeking to develop and commercialize its lead candidate tivozanib in
North America as a treatment for RCC. The Company has outlicensed
tivozanib (FOTIVDA®) for oncological indications in Europe and other
territories outside of North America. Tivozanib is approved in the
European Union, as well as Norway and Iceland, for the first-line
treatment of adult patients with RCC and for adult patients who are
vascular endothelial growth factor receptor and mTOR pathway
inhibitor-naïve following disease progression after one prior treatment
with cytokine therapy for RCC. The Company has entered into partnerships
for the development and commercialization of AV-203 (CAN017) and
ficlatuzumab, both clinical stage assets in oncology. The Company is
currently seeking a partner to develop the AV-353 platform, a
preclinical asset, worldwide for the potential treatment of pulmonary
arterial hypertension and oncology. In addition, a new formulation of
tivozanib is being explored in ocular conditions. The Company has
recently regained the rights to its AV-380 program for the potential
treatment of cachexia and is considering a variety of options to advance
the program’s development.

This press release contains forward-looking statements of AVEO that
involve substantial risks and uncertainties. All statements, other than
statements of historical fact, contained in this press release are
forward-looking statements. The words “anticipate,” “believe,” “expect,”
“intend,” “may,” “plan,” “potential,” “could,” “should,” “would,”
“seek,” “look forward,” “advance,” “goal,” “strategy,” or the negative
of these terms or other similar expressions, are intended to identify
forward-looking statements, although not all forward-looking statements
contain these identifying words. These forward-looking statements
include, among others, statements about: AVEO’s plans to present data
from the TIVO-3 study in the first half of 2019, including updated
overall survival data; AVEO’s plans and timing estimates regarding the
potential submission of a New Drug Application to the FDA for tivozanib
in the first half of 2019; AVEO’s plans and strategies for
commercialization of tivozanib in the United States and Europe; the
potential for tivozanib in RCC and other indications, such as ocular
conditions, and as either a monotherapy or combination therapy; AVEO’s
plan to seek a partner to develop the AV-353 platform; AVEO’s plans
regarding AV-380; AVEO’s cash runway; and AVEO’s strategy, prospects,
plans and objectives, including its plans to advance its portfolio of
targeted medicines. AVEO has based its expectations and estimates on
assumptions that may prove to be incorrect. As a result, readers are
cautioned not to place undue reliance on these expectations and
estimates. Actual results or events could differ materially from the
plans, intentions and expectations disclosed in the forward-looking
statements that AVEO makes due to a number of important factors,
including risks relating to AVEO’s ability to enter into and maintain
its third party collaboration and license agreements, and its ability,
and the ability of its collaborators, licensees, and other strategic
partners, to achieve development and commercialization objectives under
these arrangements; and AVEO’s ability, and the ability of its
licensees, to demonstrate to the satisfaction of applicable regulatory
agencies such as the FDA the safety, efficacy and clinically meaningful
benefit of AVEO’s product candidates, including tivozanib. AVEO faces
other risks relating to its business as well, including risks relating
to the timing and costs of any product candidate seeking and obtaining
regulatory approval; AVEO’s ability to file an NDA for tivozanib in the
timeframe it currently estimates or at all; AVEO’s and its
collaborators’ ability to successfully enroll and complete clinical
trials; AVEO’s ability to achieve and maintain compliance with
regulatory requirements applicable to its product candidates; AVEO’s
ability to obtain and maintain adequate protection for intellectual
property rights relating to its product candidates and technologies;
AVEO’s ability to successfully implement its strategic plans; AVEO’s
ability to raise the substantial additional funds required to achieve
its goals, including those goals pertaining to the development and
commercialization of tivozanib; unplanned capital requirements; adverse
general economic and industry conditions; competitive factors; and those
risks discussed in the sections titled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources” included in AVEO’s quarterly
and annual reports on file with the Securities and Exchange Commission
(SEC) and in other filings that AVEO may make with the SEC in the
future. The forward-looking statements in this press release represent
AVEO’s views as of the date of this press release, and subsequent events
and developments may cause its views to change. While AVEO may elect to
update these forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. You should, therefore,
not rely on these forward-looking statements as representing AVEO’s
views as of any date other than the date of this press release. Any
reference to AVEO’s website address in this press release is intended to
be an inactive textual reference only and not an active hyperlink.